Law:

Section:

Section 5(v) of the Wealth-tax Act, 1957 - Exemption - Assets brought into India by persons of Indian origin settled permanently in India - Assessment year 1989-90 - Whether even if assessee has converted assets, which were brought by him from outside India, into money, and has used that money for acquisition of other assets, either original asset or money's worth of asset, or asset which is acquired with sale consideration of original asset, is eligible for exemption, so long as said asset is available with assessee - Held, yes FACTS The respondent/assessee was a NRI, who returned to India for permanent settlement. While returning to India, he had brought a car. During the previous year relevant to the concerned assessment year, the assessee sold the car and invested the sale proceeds in movable properties and claimed exemption on the sale consideration under section 5(1)(xxxiii), on ground that the sale consideration of the car was the value of the asset brought by him. The Assessing Officer disallowed the exemption on the ground that the assets which were sold and converted into money lost the exemption. On appeal, the Commissioner (Appeals) confirmed the order of the Assessing Officer. On further appeal by the assessee, the Tribunal upheld the claim of the assessee and allowed the appeal. On reference : HELD Clause (xxxiii ) of section 5(1) grants exemption in respect of 'money' and the value of assets brought by the assessee into India. The expression 'value of assets' has got significance in deciding the issue. [Para 7] When clause (xxxiii ) of section 5(1) refers to the value of the assets, it is the money's worth or the price of the assets which is relevant. Clause (xxxiii ) itself provides that the value of assets acquired by the assessee out of such money is also held to be exempt. The expression 'such moneys' refers to moneys as well as the value of the assets brought by the assessee from abroad. The value of asset is the money's worth or the sale consideration. Therefore, even if the assessee has converted the assets, which were brought by him from outside India, into money, and if the money has been used for acquisition of other assets, either the…

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